The Office of Fair Trading (OFT) will have a fresh look at the deal in the wake of a new proposal made by the companies to sell bulk of Whyte & Mackay business of Indian liquor major to address the competition issues in the British whisky market.
Diageo and United Spirits are both major suppliers of spirits worldwide.
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In the UK, United Spirits' subsidiary, Whyte & Mackay, is primarily active in the supply of whisky, besides being a player in other spirits, including vodka.
Over the last few days, the counter had witnessed buying interest on reports that Diagoe is likely to hive off some of the brands of the Indian spirits maker.
In the opening trades today, the stock price of the company plunged as much as 8.5% after 11.5 lakh shares changed hands at Rs. 2,400-2,450.
So, what should one do with United Spirits? Ravi Nathani, technical analyst at Nsetoday.com shares his view on the same.
Markets are marginally in the red today with Nifty hovering close to 6,100 levels. Do you see the index edging lower on the charts in the near term?
Near term Nifty is trading in no trading zone / range bound and the range is 5970 on lower side and 6215 on the higher side, trade and close below / above would add trigger in the direction. Until than expect markets to be highly volatile in near term whereas we may see Intraday lowers and than in no time fresh intraday highs for the same day, therefore best trading strategy would be stay away trading in Nifty for some time until we get clear trading strategies on charts.
What do the charts suggest for United Spirits which is down over 2%?